After a long career at Barron's, I joined Forbes as San Francisco bureau chief in December 2010. I've been writing about technology and investing for more than 25 years. With the Tech Trade, I've picked up where I left off when I was writing the Tech Trader Daily blog at Barrons.com. When I'm not working, you can find me riding my road bike around the Bay Area hills, managing my fantasy baseball team, rooting for my beloved Phillies and Eagles and hanging out in the Valley with my family. You can follow me on Facebook, on Twitter (@savitz), and on Google+.

GameStop FY Q3 Profits Top Ests; Sets New $500M Buyback

GameStop this morning posted better-than-expected profits for its fiscal third quarter ended October 27.

For the period, the video game retailer reported revenue of $1.77 billion, down 8.9% from a year ago, and just below the Street consensus at $1.79 billion. Comparable store sales were down 8.3%. Adjusted EPS was 38 cents a share ahead of the Street at 33 cents.

The company noted that it bought back $76.8 million of common stock in the quarter; GameStop also announced plans for a new $500 million stock repurchase program. The company keeps its dividend at 25 cents quarterly, for an annualized payout of $1 and a yield of 4.3%.

For FY Q4, the company sees comp store sales ranging from up 1% to down 7%, with adjusted profits of $2.07 to $2.27 a share; Street consensus has been $2.16.

For the full fiscal year ending January 2013, the company is projecting adjusted profits of $3.10 to $3.30 a share; Street consensus has been $3.14. GameStop sees full year comp store sales down 6% to 9%.

“Diligent operational efforts in a tough video game market as well as continued margin expansion of 200 basis points resulted in third quarter earnings exceeding expectations,” CEO Paul Raines said in a statement. “We are now focused on delivering a successful holiday quarter driven by great titles, an unrivaled loyalty program, exciting new businesses and the Wii U launch.”

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